WSJ and Bloomberg behave like biased activists - Shaun Rein

Shaun Rein

The Wall Street Journal and Bloomberg are increasingly becoming biased activists when it comes to China, says business analyst Shaun Rein at the state-owned CGTN. "I'm a big believer that they should have critics of China quoted, but then they should also have supporters of China quoted," he argues.

Over the last 10 years, many journalists from the Wall Street Journal have told me that they've tried to quote me. But at the very last minute, editors have stepped in and cut me out of the article, not because I don't have credibility in the subject matter being discussed, but because of my political leanings, because I generally support the Chinese government. This hasn't been one reporter or even two. This has been around 10 reporters over the past decades that have told me this.

I think one of the problems that's happening right now is publications like the Wall Street Journal, like Bloomberg, are becoming activists. They're becoming very biased, whether it be on how China's developing, on the riots in Hong Kong, on U.S.- China relations.

And they're not being fair. I'm a big believer that they should have critics of China quoted, but then they should also have supporters of China quoted. It's really important that media has different views, and that's just not happening right now because of the politicized situation in the world.

More at the CGTN.

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Chinese donations to top US universities rise - Wei Gu

+Wei Gu 

High profile donations from Chinese wealthy to US top universities have been hitting the headlines a few times. But, discovers WSJ wealth editor Wei from BE Education founder William Vanbergen, donations from China are lagging compared to other nationalities, although that might change.

Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.

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Why women drive China´s e-commerce - Wei Gu

+Wei Gu 

China´s women are the driving force in the country´s e-commerce, explains WSJ´s wealth editor Wei Gu. 75% of the online consumers are already women, and they are good for 90% of the revenue. One of the reasons: women earn better than men.


Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´ request. 

Are you looking for more speakers at the China Speakers Bureau on luxury goods? Do have a look at this list.
 

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Real estate problems are limited in size – Mario Cavolo

+Mario Cavolo 

Most media are hyping up the problems in China´s real estate, argues author Mario Cavolo on his website. Fortunately, he finds support in articles in the Wall Street Journal by Nicole Wong and in research of CLSA.

Mario Cavolo:

Problems in China’s real estate market are not broad-based. Much of the excess overbuilding is taking place in China.s 3rd tier cities, two of which I happened to visit myself in the past week, Jinghua and Huangshi. Both lovely cities of 2-3 million population with new development zones expanding a few years ahead of the game. Is this a reason for caution, a slow down? Sure. A catastrophe or collapse? Not even close, stop those silly media-hype notions.

Why? Let’s do some comparisons. In the U.S., the vacancy rate for such properties is 10%. In China it is a much higher 15% and Nicole’s team suspects it will rise to 20% in coming years, reflecting too much spending on property rather than other assets. But since we know that Chinese have far fewer other choices to invest compared to the west, I don’t view this as much of a surprise or red flag. Chinese view an 80sqm empty concrete hole with a long term view, much as a bar of gold. It is simply a store of assets. It sits there,  it may or may not become 100% occupied, it is not mortgaged to the hilt, it will be passed on to the children. Considering also, the deeply rooted behavior of Chinese married couples always starting their lives with their own newlyweds home purchased by the family, this should come as no surprise. Much of this behavior driven by core societal values, not speculative investment, giving us a far more sustainable view for the long term health of the real estate market. While lots of people in the west own stocks as a core asset, for example, few Chinese do. It is understood that Chinese stock exchanges and listed companies are far less reliable and transparent than their counterparts in the west, so they shy away from such risk and volatility.

Last year, new home purchases in China totaled 12% of GDP, double the 5.9% ratio found in the U.S. building boom of the 50’s. Why is this not a worry at all? Because there is no comparison between these two historical economic booms. Compared to the post world war U.S.boom the China expansion is ten times larger in scale, driven by a population of 300-400 million rising middle class. The U.S. boom in the 50’s was driven by a far smaller population during a time in the world in terms of technology and innovation which could easily be called ancient. Did we even have fax machines back then? If you consider the sheer massive scale of China’s expansion and urbanization in today’s world the numbers can be recognized as far more reasonable than concern for disaster.

More on Mario Cavolo´s website.

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Why Chen Guangbiao´s business card is out of tune - Wei Gu

+Wei Gu 

Nanjing-based tycoon Chen Guangbiao latest tour to the US, including a bid for the New York Times, gave him quite some attention, and certainly caused laughter too. WSJ wealth editor Wei Gu explains in the Wall Street Journal why his preposterous business card might deserve a revamp.

Wei Gu:

Though they didn’t draw headlines, Mr. Chen’s contact details also were noteworthy. Unlike most other important people in China, who pride themselves on not giving much contact details on their cards, Mr. Chen listed two mobile phone numbers and two email addresses. 

His China cellphone number is a status symbol in itself, with six “8”s, including four together at the end. The number must have been pricey to procure, as the number eight is deemed as a particularly auspicious number in China. 

Mr. Chen doesn’t appear to have devoted the same sort of effort to technology systems at his own company. Both of his email addresses are with 163.com, a free email service provided by Netease. This isn’t uncommon in China, where even government officials put their own YahooYHOO +0.38% or Hotmail addresses on their cards. 

The bigger question is whether Mr. Chen needs a card at all, particularly in a China that has become more technologically sophisticated. 

With the rising popularity of Chinese social networks on cellphones, email increasingly looks like an outdated way to keep in touch. When Chinese people meet at social functions now, they often don’t exchange business cards. Instead, they turn to their phones, open their WeChat application, and started adding each other as friends.

More in the Wall Street Journal.

Wei Gu is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers´request form.  

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A squeezed middle class needs more love - Wei Gu/Shaun Rein

Wei Gu

Between a growing number of billionaires and 700 million peasants China's middle class has severe problems in taking off. In the Wall Street Journal its wealth editor Wei Gu asks for more love for the middle class. Business analyst Shaun Rein warns against an unhappy middle class.

Wei Gu:

Among the 3,000 delegates of the 2013 National People's Congress, the percentage of blue-collar workers and peasants has risen to 13% from 8% in 2012. The number of migrant workers has jumped to 30 from just three last year. Wealthy Chinese continue to be well represented. China's richest man, Zong Qinhou, is attending the annual powwow for the 11th time.

The squeezed middle class deserves more love. As many as 51% of Chinese working professionals suffered from some level of depression, the Ministry of Health said in 2011. They blame pressure from a rapidly changing society, increased competition, long work hours and high property prices.

And Shaun Rein:

"The biggest risk in the world is China's middle class not being happy," said Shaun Rein, the managing director of China Market Research, a consulting firm. "They are the most pessimistic group in the world." 

"The truly rich can afford to live anywhere, and the poor get double-digit wage increases every year," Mr. Rein, author of the book "End of Cheap China," said. "China's middle class has hopes to own a car and home and be rich one day. But as their salary growth slows, they realize they will never be able to get there."

Shaun Rein

More in the Wall Street Journal. Bot Gu Wei and Shaun Rein are speakers at the China Speakers Bureau. Do you need them at your meeting or conference? Do get in touch or fill in our speakers' request form. 

Update: Here Wei Gu talk more about the thin demografic layer called China's middle class for the WSJ.

Education is one solid way for Chinese to amass more assets. But is it working, is education a gold mine or a black hole, asked the China Weekly Hangout last week, and got some answers from HKU lecturer Paul Fox. Moderator is Fons Tuinstra, president of the China Speakers Bureau.  

Next week, on Thursday 14 March, the China Weekly Hangout will focus on the media in Hong Kong. In the 1990s they were a beacon of hope, and Hong Kong one of few global news capitals. With Paul Fox of the HKU we will discuss the state of Hong Kong media. You can read our announcement here, or directly register at our event page. 

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